Instant decision, Request the best bad credit auto loan
Where to find a car loan at the best bad credit auto loan? Everything you need to know to get the best bad credit auto loan is published on compariloan site.
The car / motorcycle loan market revolves around several players:
- Online credit organizations
- Dealers offering loans directly in the garage
- Banks and specialist insurers
Car loan from credit organizations
Logically, large credit organizations such as Viloan or Bankate all offer new or used car credit solutions. These offers are most often found under the title car credit or car / motorcycle loan.
Specialists in consumer credit, it is overwhelmingly these online organizations that offer the best car credit rates. They are above all the most capable of accepting requests, provided that they can prove their income and their situation. However, not all specialists are as flexible on the question of the car loan acceptance rate.
The Best Car Credit Organizations
Some online specialists are used to offering better rates than others. Here is a ranking of the specialists most likely to offer the best financing. This classification does not, however, replace a personalized comparison.
How to get the best rate?
It is for this reason that we have developed a comparison of car loan rates, but also an immediate response system in principle. A simple four-step credit form therefore guarantees:
- A ranking of the best APR auto credit rates of the day among the largest online organizations
- An immediate response in principle (without obligation) from the organization offering the best rate
- The possibility, in the event of a negative opinion from the best organization, to query the following two in one click
Integrating both the new car and the used car loan, our questionnaire increases your chances of obtaining a favorable opinion. This online pre-acceptance provides a first basis for funding. It is then possible to canvass the builders or even their banker to try to obtain better financing. In fact, the car loan from the best specialists such as Viloan, Bankate or other Banque Casino is often difficult to match.
Banks and car credit, a complex relationship
All banks are technically capable of offering car / motorbike credit or even any other vehicle (caravan, mobile home, etc.). Few, on the other hand, are able to provide a satisfactory answer to borrowers wishing to make a car loan at the best rate.
Auto loan from banks generally poses two questions:
- It is often mandatory to be a customer of the bank to claim it
- The response is only rarely immediate, slowing down the project
- Rates are rarely the best on the market
Clearly, only a few elected customers will be entitled to the best car loan rates from their bank. Still, this rate must be better than that of online car credit specialists, which is far from being won.
Why doesn’t my banker offer me any car loans?
Assessing the risk when applying for a car loan is not a specialty of banks. Some customers of their bank will be surprised not to receive any offer of auto / motorcycle credit, while they have a good record keeping and have been loyal for years.
Banks will generally make an effort to find an excellent rate for profiles with good savings and attractive income. Otherwise, they just don’t make car loans their specialty. Subsidiaries of major banks, credit organizations are there for that.
What about car credit from insurers?
Insurers have been offering car credit for a few years now, in addition to their traditional solutions. The basic idea is quite simple. With clients already on hand, insurers are taking advantage of this to offer car loan solutions.
Insurers are experiencing the same difficulties as banks when it comes to car loans. Auto credit is not their core business. They therefore find it difficult to assess the risk. Only historical customers of the insurer for several years will be able to hope to obtain an advantageous rate, outside the promotional period.
Car loan in concession: a good idea?
There are 2 types of loan to finance your car that can be offered by a dealer. Either the dealer belongs to a car manufacturer brand and thus offers the car loan from the related financing branch. For example, a dealer belonging to Renault will only offer you loans from Diac, which is its financial subsidiary. And it’s the same for Peugeot Citroën with Crédipar.
Multi-brand dealers can offer loans from different organizations. Some credit specialists have, for example, developed their own branch of car finance. This is the case with Viloan, which acts as a lender under the Viaxel brand.
Car loan or LOA?
Concessional credit often offers only one option, and rarely the cheapest. Not only is this not their specialty but there is an intermediary to pay in addition, namely the dealer. New or used car loans in dealerships offer no comparison.
In response to an overpriced or simply refused car loan, dealerships have developed LOA solutions. Leasing with an option to purchase accounts for more than 75% of new vehicle purchases (2019 figures). It pleases the French very much, but turns out to be more expensive in terms of total cost in almost all cases.
What is the level of auto loan rates?
Take the example of a new car loan of 15,000 USD over 60 months to get a good idea of the level of APR rates charged by organizations.
|Auto loan $ 15,000 over 60 months||Fixed APR rate||Monthly fees||Total cost of credit|
|Cheapest credit||2.80%||267.96 $||1077.60 $|
|Credit ranked 3rd of our comparator||5.77%||287.37 $||2242.20 $|
Paying twice as much interest for exactly the same car loan is anything but a surprise. However, this is a comparison between the best organization and the third. The difference is even more marked when scrolling through the following offers. Using a car credit comparator makes perfect sense.
Getting the best car loan rate: instructions
The car loan rate
What you should know about the car loan is that this consumer credit formula is very framed by the law on consumer credit. All quantified advertising (which mentions a car loan rate or an amount) must present the rate. And not just any rate, the APR: overall effective annual rate. This rate has been defined as a reference by the latest laws so that consumers can get an objective opinion on the comparison of one credit to another.
This rate includes all car loan costs: both interest and any other form of cost, if any, such as application fees. Our credit comparison takes into account only the APR as a reference for proposing a classification of car credit.
New or used car credit, what difference in rates?
There is a difference in rates between financing a new and used car. Indeed, in the case of a new car, the credit organization knows perfectly well the price of the car it is about to finance. He thus masters the curves of his haircut.
This more precise evaluation makes it possible to seize the car by controlling more easily the cost of the resale in the event of bad reimbursement. However with a used car, it is much more random. Less profitable for organizations. This is the reason why the used car loan is more expensive – by 10% on average – than the new car loan.
Different supporting documents?
To obtain a loan for a new car, it is necessary to provide proof of purchase (order form). Used car credit works on the same principle. On the other hand, when it is not possible to provide proof, it is to a personal loan without proof that we must turn.
Negotiating your car loan in three steps
1. Get the best auto loan proposal online
As we have explained to you, in general, the best cheap car loans are offered by online credit agencies. We have made these offers accessible in a single questionnaire and with a custom ranking on our site. It will therefore be very easy for you to get a credit proposal at the best rate using our comparison.
Our tool has two big advantages:
- The three best organizations provide an immediate response in principle, without having to go to the different sites.
- The best APR rate accepted allows you to obtain a first concrete proposal on which to rely to negotiate your car loan.
2. Challenging the dealers and their banker
Once the best credit rate has been obtained in a few minutes via a form, it’s time to see what the competition is offering. These are banks, dealers and possibly its car insurer. Actors that it is possible to meet physically, unlike the first stage. The principle is simple: present your car loan proposal at the best rate and ask if it is possible to do better.
3. Choose the best APR rate suited to your project
It is sometimes necessary to wait a few days before a banker studies the request for a car loan, and makes a concrete request. The same goes for the dealers, who will often offer them an alternative LOA solution. Once all offers are received, it is easy to compare APR rates and offers to keep only the best car credit.
Car credit: what the law says
The car loan is very framed from a legal point of view (see here). Here are a few things to remember before you start looking for the best loan.
- Always try to negotiate the price of the car before applying for a loan, or see if it is not offered cheaper elsewhere.
- Check that the order form for the car includes the words “purchase on credit” as part of a new or used car loan signed at the dealership. This protection makes it possible to cancel the sale in the event of credit being refused, or to cancel the loan when delivery does not take place as planned.
- The withdrawal period is 14 days for a car loan, as for any other consumer loan.